INTRODUCTION

The European banking and capital markets industry is undergoing an evolutionary phase. The industry is also faced with multiple challenges that are pressurizing it to improve operational efficiencies. Further, European banks and financial firms continue to operate in an uncertain regulatory environment, which makes adherence challenging and complex. European Chief Information Officers (CIOs) are looking at leveraging next-generation services, such as Social media, Mobility, Analytics, and Cloud (SMAC), to achieve cost arbitrage while enhancing customer experience and meeting requirements.

In this research, we analyse the current trends and the future outlook for large, multi-year application outsourcing relationships (AO) for the European banking and capital markets sector. We focus on market activity and trends for large AO relationships and emerging priorities of buyers and key investment themes in the European banking and capital markets sector. The research also captures significant movements in volume/value of banking and capital markets AO transactions in Europe in the last 12 months.

Further, Everest Group has assessed the capability and market success of 22 banking AO service providers and 15 capital markets AO providers in Europe and mapped them on Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix, which is a composite index of a range of distinct metrics related to a provider’s capability and market success.

Scope

• Industry:
• Banking: Retail banking, wholesale banking, credit cards, loans, and mortgages
• Capital markets: Investment banking, asset management, custody and funds administration, and brokerage services
• Services: Large (TCV1 > US$25 million), multi-year (>three years), and annuity-based application outsourcing
• Geography: Europe
• Sourcing model: Third-party AO transactions; excludes shared services or Global In-house Centers (GICs)
• Service providers assessed:
• Banking AO services in Europe: Accenture, Capgemini, CGI, Cognizant, CSC, Dell, Envanda, EPAM, HCL, Hexaware, HP, IBM, Infosys, ITC, L&T Infotech, Luxoft, MphasiS, Polaris, TCS, Tech Mahindra, Unisys, and Wipro
• Capital markets AO services in Europe: Accenture, Capgemini, CGI, Cognizant, CSC, Dell, EPAM, HCL, IBM, Infosys, L&T Infotech, Luxoft, TCS, Tech Mahindra, and Wipro

CONTENT

In this report, we focus on:

• Banking and capital markets ITO market overview (global, with a focus on Europe)
• Market trends and activity for large AO relationships in European banks and capital markets firms
• Emerging priorities of buyers and key investment themes in European banking and capital markets
• European banking and capital markets AO service provider landscape: service providers have been assessed on market success and delivery capabilities (scale, scope, domain investments, and delivery footprint) and mapped on Everest Group PEAK Matrix
• European banking and capital markets AO PEAK Matrix characteristics: analysis of service provider categories viz. Leaders, Major Contenders, and Emerging Players across themes such as market activity, scale, and delivery footprint